North Carolina Down Payment Support Systems

Payments Gateway - These programs are the deposit Assistance Program and the Mortgage Credit Certificate.

You purchase a house and December 1, 2009 and if you meet the requirements for one of these plans, you can ALSO qualify for the $8,000 tax credit just enacted into law.

First, who's a First Time Home Buyer? There is a First Time Home Buyer someone who hasn't owned a house in the past three years. It is the exact same qualifying definition.

What is a Mortgage Credit Certificate and Who Qualifies?

All home owners can claim an itemized deduction for mortgage interest. An MCC “reduces your tax liability based on a portion of the mortgage interest that you pay.

If you are eligible for the MCC, you can claim 20% of the interest you pay as a credit on your federal income taxes on your mortgage. It is possible to save as much as $2,000 on your taxes.

You may have the ability to unite this with the $8,000 tax credit, if you do qualify for 2009. This might reduce a purchaser's tax liability by $10,000.

Household income is defined as the “gross income of the mortgagor and every other person expected to reside in the residence who's 18 years old or older.”

The income and house price limits that apply in Orange, Durham and Chatham Counties are given below.

MCC Income Limits 1 Person $61,500 2 Men $61,500 3 Men $70,500 4 Men $70,500

MCC Sales Cost Limits New Dwelling $220,000 Existing House $210,000

Who Qualifies for Down Payment Help?

The customer only needs to pay and the load would pay around $8,000 of the remaining balance.

This program has stricter income limits than the MCC program summarized above. Like the MCC program, it can be utilized in combination with all the new $8,000 tax credit on house purchases between December 1, 2009 and January 1, 2009. The deposit assistance, however, can't be utilized in conjunction with the MCC. This is an either or scenario.

The income and house price limits that apply in Durham Orange and Chatham Counties are listed below.

Down Payment Assistance Income Limits

1 Person $39,950 2 Men $45,650 3 Individuals $51,350 4 Persons $57,050

Down Payment Support Sales Cost Limits New Dwelling $210,000 Existing House $210,000